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Background Notes: Association of Southeast Asian Nations, March 1992

Released by the Bureau of Public Affairs
U.S. Department of State

Official Name: Association of Southeast Asian Nations
PROFILE(1)
Member states: Brunei Darussalam, Indonesia, Malaysia, the Philippines,
Singapore, and Thailand.
Geography
Area: 3 million sq. km. (1 million sq. mi.); about the size of the US
east of the Mississippi River, plus Texas and Oklahoma. Major cities:
Brunei Darussalam--Bandar Seri Begawan (70,000); Indonesia--Jakarta (8.8
million), Surabaya (2 million), Bandung (1.4 million), Medan (1
million); Malaysia--Kuala Lumpur (1 million); Philippines--Manila (6
million); Singapore--(2.7 million); Thailand--Bangkok (6 million).
People
Total population (1990): 333 million. Avg. annual growth rate: 2%.
Ethnic groups: Malay, Thai, Chinese, Indian, others. Religions:
Islam, Buddhism, Christianity, Taoism, Hinduism. Languages: Malay,
Indonesian, Filipino, Thai, Chinese, English.
Foundation and Goals
Established: August 8, 1967, with the signing of the Bangkok
Declaration by Indonesia, Malaysia, Philippines, Singapore, and
Thailand. Purpose: To strengthen regional cohesion and self-reliance,
while emphasizing economic, social, and cultural cooperation and
development.
Organization
Principal organs: Meetings of the ASEAN Foreign Ministers, the ASEAN
Standing Committee, and the ASEAN Economic Ministers. There is an ASEAN
Secretariat, located in Jakarta, with associated specialized
intergovernmental committees.
Economy
Members' aggregate GDP (1990): $303 billion. GDP growth rate (1990):
7.6%. Per capita GDP (1990 avg.): About $950.
Natural resources: Petroleum, natural gas, timber, tin, nickel, copper,
iron, bauxite, other minerals.
Agriculture (about 22% of GDP): Products--rice, rubber, cassava, sugar,
coffee, corn, pineapple, bananas, coconuts, palm oil.
Industry (about 32% of GDP): Types--electronics, petroleum, textiles,
minerals, chemicals, food processing, wood products, fabricated steel,
ships.
Trade (1990): Exports--$141 billion ($27 billion to US): office
machinery and electronics, petroleum, textiles, telecommunications
equipment, natural rubber, processed seafood and fruits, wood products,
tin, palm oil, sugar, coffee. Major markets--Japan, US, European
Community (EC). Imports--$155 billion ($19 billion from US): machinery
and other capital goods, chemicals, oil, food. Major sources--Japan,
US, EC, Saudi Arabia.
ASEAN Officials
ASEAN Secretary General: Rusli Noor. The Government of Brunei is the
designated liaison channel between ASEAN and the US for the 1991-94
period. ASEAN Representation in the US: Liaison through embassies of
ASEAN member countries in Washington, DC, with chairmanship on a 6-month
rotating basis.
________
(1)To ensure comparability, single sources for statistics have been used
whenever possible; therefore, figures in this Background Note may be at
variance with those in the Notes on individual ASEAN countries.
________
GEOGRAPHY
Located in Southeast Asia on the Malay Peninsula and the islands to the
south and east in the South China Sea, the six ASEAN states adjoin some
of the most important sea lanes in the world. The ASEAN states lie
astride the Equator and extend from roughly 1,600 kilometers (1,000 mi.)
north to 800 kilometers (500 mi.) south.
PEOPLE
One of the most striking characteristics of ASEAN is its wide diversity
in race, language, culture, and religion. Many ethnic groups coexist
within ASEAN. Malayo-Polynesians make up the majority in the
Philippines, Malaysia, and Indonesia (and thus in ASEAN), although
Malaysia and Indonesia have significant numbers of other groups.
Thailand is 84% Thai. Ethnic Chinese make up 75% of the population of
Singapore, and sizable Chinese minorities are found in each of the other
ASEAN nations.
Derivatives of the Malayo-Polynesian linguistic family, most notably
Malay, Indonesian, and Pilipino, are the dominant languages in all but
Thailand and Singapore. In Thailand, 85% of the population speak Thai.
Various Chinese dialects are spoken throughout the region. English is
the region's most widely spoken non-indigenous language.
HISTORY
ASEAN was founded officially on August 8, 1967, with the signing of the
Bangkok Declaration by the foreign ministers of the original five
members. The organization was created to strengthen regional cohesion
and self-reliance through economic, social, and cultural cooperation.
It developed slowly during its first decade, partly because of diverse
economic interests, varied historical experience, and the initially
fragile political ties among the five original states.
Brunei Darussalam, formerly a British protectorate, joined ASEAN as its
sixth member state in January 1984, shortly after attainment of full
independence.
To curb external interference, in 1971 the ASEAN nations set as their
goal the establishment of a zone of peace, freedom, and neutrality
(ZOPFAN) for Southeast Asia, and this was included in the Bali
Declaration signed by the ASEAN heads of government in 1976. This
concept remains a long-term objective.
The fall of the Republic of Vietnam in 1975 led to a new phase of ASEAN
relations. In 1976, the first ASEAN summit conference was convened in
Bali, Indonesia, and collaboration among ASEAN states took a major step
forward with the signing of the Declaration of ASEAN Concord. Aimed at
promoting cooperative activities in industry, trade, and other fields,
this declaration remains the major "constitutional base" for ASEAN
cooperation. It also authorized the formation of the ASEAN Secretariat
in Jakarta.
Growing Cooperation
The Vietnamese invasion of Cambodia, starting in December 1978, played a
key role in furthering ASEAN collaboration. During the 1980s, the ASEAN
nations successfully managed passage of yearly UN General Assembly
resolutions calling for an end to Vietnamese occupation and were
instrumental in the 1991 peace settlement in Cambodia. These
accomplishments and the political cooperation thus fostered have been
ASEAN's major political achievements.
Diverse economic interests and levels of development have limited the
extent of economic cooperation between member nations. However, the
collapse of international commodity prices in the mid-1980s and the
subsequent downturn in the economies of several ASEAN nations spurred
regional leaders to initiate serious economic reforms and trade
liberalization plans. The December 1987 ASEAN summit gave new impetus
to reducing internal trade barriers and establishing joint industrial
projects; it also fostered closer coordination on economic issues by
ASEAN governments, particularly in international forums. The 1989
creation of APEC (Asia-Pacific Economic Cooperation, an informal
economic grouping of the US, Canada, Japan, South Korea, Australia, New
Zealand, and ASEAN, which expanded in 1991 to include the People's
Republic of China, Taiwan, and Hong Kong) has provided an additional
important venue in which ASEAN representatives can meet and discuss
issues of broader regional importance. ASEAN economic ministers in 1991
agreed to move toward an ASEAN Free Trade Area (AFTA). The decision to
create AFTA was taken by ASEAN heads of government at the fourth ASEAN
summit in January 1992.
INSTITUTIONS
Since its inception, ASEAN gradually has developed a number of formal,
regular consultative meetings and committees, but it has only a very
limited permanent structure. Decisions are made by consensus and often
are achieved through informal, ad hoc consultations. However, there are
several formal bodies that consult and make decisions on various common
issues.
Foreign Ministers' Meetings
The periodic meetings of the six foreign ministers constitute the
principal decision-making body for ASEAN. In addition to their regular
annual sessions in June or July, the foreign ministers gather on other
occasions as needed. The venue of the ministerial meetings rotates
annually among the six countries.
The foreign ministers' meetings have assumed a prominent role partially
as a result of events in Indochina. Recognizing the importance of a
unified front on the Cambodia question, ASEAN has used the foreign
ministers' consultations to reaffirm their common stand. Periodic
meetings of senior officials plan for and supplement the work of the
foreign ministers. In addition, an ASEAN Standing Committee, composed
of ambassadors resident in the venue of the ministerial meeting and
chaired by the foreign minister of the host country, meets as needed.
Economic Ministers' Meetings
The economic ministers usually meet twice a year to discuss common
approaches to economic questions and to review cooperative programs.
Decisions on economic questions are then referred to the foreign
ministers or heads of government for final approval. Various sectoral
committees, subcommittees, and working groups have been established to
deal with specific economic and social issues. Regular ministerial
consultations also are held in such sectors as labor, social welfare,
education, energy, and information.
The ASEAN Secretariat
The ASEAN Secretariat is located in Jakarta in a headquarters building
provided by the Indonesian Government. The ASEAN states have not
favored development of a strong central coordinating authority. The
Secretariat is limited in size and is tasked mainly with serving the
various ministerial meetings and committees. It has been suggested that
the Secretariat might serve as a regional research, information, and
statistical center, but this and other roles have not yet been
authorized.
Complementing the ASEAN Secretariat, each government maintains its own
National Secretariat in its Foreign Ministry; these vary in size and
function. The six National Secretariats are responsible to their own
governments.
FOREIGN RELATIONS
In order to achieve closer relations with major developed nations, ASEAN
has instituted an annual "Post-Ministerial Conference" at the foreign
minister level with the United States, Japan, Canada, South Korea, the
European Community, Australia, and New Zealand. Beginning in 1979,
immediately following the ASEAN foreign ministers' mid-year meeting,
joint and individual meetings have been held among ASEAN ministers and
their counterparts from the seven "dialogue partners" named above.
ASEAN's relations with Japan have strengthened steadily since the early
1970s. Links in trade, investment, and aid are particularly strong and
are rapidly growing. Examples of Japan's increasing commitment to the
region include the $2 billion fund established in 1987 to finance ASEAN
industrial projects, joint ASEAN-Japanese industrial ventures, and
Japanese-sponsored technical training institutes. ASEAN's relations
with Australia, Canada, New Zealand, and the EC also have deepened, and
other nations, including the former Soviet republics, China, and
Vietnam, have sought "dialogue" roles.
ECONOMY
The ASEAN region is one of the world's economic success stories in
agriculture, industry, and trade. The economies range from resource-
rich but still largely agricultural Indonesia, with a per capita gross
domestic product (GDP) of $505, to the highly industrialized city-state
of Singapore, with a per capita GDP of $12,720. The ASEAN nations are
mainly committed to market- and export-oriented economic growth
strategies. Their dynamic economies averaged annual GDP growth of about
7% during the 1970s but experienced stagnation or recession in the mid-
1980s due to slackening world trade and deteriorating commodity and oil
prices. Since the late 1980s, growth rates have increased steadily and
in 1990 ranged from 2.1% for the Philippines to 12% for Thailand; the
combined ASEAN economies grew 7.6% in 1990.
Except for Singapore and Brunei, the ASEAN economies are still largely
agricultural, producing commodities such as rubber, palm oil, rice,
copra, and coffee for export, though manufacturing sectors in Malaysia,
Thailand, and Indonesia are of increasing importance in each economy.
Singapore has a highly diversified commercial and industrial economy,
with growing emphasis on the service sector. Commercialized cultivation
and processing of primary agricultural products are important industries
in Indonesia, Malaysia, Thailand, and the Philippines. ASEAN accounts
for 72% of world exports of rubber and is the world's largest source of
tropical timber. Mineral resources include 26% of the world's tin
exports and significant amounts of copper, coal, nickel, and tungsten.
Indonesia, Malaysia, and Brunei are important energy exporters,
producing most of East Asia's petroleum and natural gas.
COOPERATION WITHIN ASEAN
Political Cooperation: The Cambodia Conflict. The common challenge to
regional security posed by the events in Indochina stimulated closer
political cohesion among the ASEAN countries. The war in Cambodia and
the resulting flood of refugees into Thailand raised challenges to
regional security that ASEAN collectively moved to meet.
ASEAN led efforts in the United Nations and other forums to oppose
Vietnam's occupation of Cambodia and requested the 1981 UN conference
on Cambodia. The 93 nations attending the conference unanimously
approved a final declaration embodying the principles on which a
settlement should be based to establish an independent and neutral
Cambodia: a political settlement, withdrawal of all foreign troops, and
UN-supervised elections. ASEAN strongly supported the peace agreement
reached in 1991 and Prince Norodom Sihanouk's election to head a
coalition government. Indonesian Foreign Minister Ali Alatas served as
co-chairman of the Paris International Conference on Cambodia, where the
peace settlement was reached. He articulated the ASEAN "vision of one
Southeast Asia, at peace within itself and with its neighboring powers,
its constituent countries harmoniously cooperating with one another for
common progress and prosperity." The conference was attended by foreign
ministers of all six ASEAN countries.
The end of hostilities in Southeast Asia has permitted discussion of
the possibility that those nations will become involved in ASEAN. The
"Singapore Declaration" of the 1992 summit included a pledge to play an
active role in inter- national efforts to reconstruct Vietnam, Laos, and
Cambodia. ASEAN leaders also stated that they welcome accession to the
ASEAN Treaty of Amity and Cooperation by all countries in Southeast
Asia. Laos and Vietnam are reportedly interested in joining, perhaps in
anticipation of being asked to a participate as observers in some ASEAN
meetings.
Refugees. The role of the ASEAN states has been crucial in coping with
the refugee flow from Cambodia, Laos, and Vietnam. Since 1979, these
nations have provided first asylum to more than 2 million refugees from
these countries. Countries of first asylum for boat people--Thailand,
Malaysia, and Indonesia--are working closely with the United States, the
UN High Commissioner for Refugees, and European nations toward the
eventual resettlement or repatriation of refugees. However, in recent
years the ASEAN countries have become concerned about the continued
exodus of refugees. In 1989, Malaysia ceased granting first asylum to
newly arrived boat people. In May 1990, ASEAN publicly stated that the
burden of providing first asylum had become intolerable and pressed for
an international effort to resolve the Southeast Asian refugee problem.
Economic Cooperation. ASEAN leaders agreed in 1992 to cut intra-ASEAN
tariffs to 0-5% on all manufactured products and processed agricultural
goods within 15 years and thus create an ASEAN Free Trade Area. This is
an important step toward overcoming barriers to greater integration
among the economies of the various ASEAN states. Since its inception,
ASEAN has faced constraints on eco- nomic cooperation. ASEAN members,
except Singapore, depend on the production and export of primary
commodities and manufactured goods that tend to compete with, rather
than complement, the products of their ASEAN partners. Intra-ASEAN
trade, although significant and growing, is still less than 20% of total
ASEAN trade. ASEAN members generally seek a common policy on
commodities and on other economic issues in international forums, such
as the General Agreement on Tariffs and Trade (GATT) and the UN
Conference on Trade and Development (UNCTAD).
The semi-annual meetings of the economic ministers constitute the key
consultative mechanism on regional economic policy. In addition, ASEAN
has established a number of economic committees and consultative
arrangements dealing with a wide range of economic issues.
DEFENSE
While the heads of government had discussed ways to promote dialogue on
regional security issues, ASEAN still has not been given a defense or
security role. Cooperation among member-states has been conducted on a
bilateral basis. ASEAN remains committed to its 1971 call for a zone of
peace, freedom, and neutrality.
ASEAN governments recognize that under current circumstances a US
security presence in the area is an important stabilizing force. While
no other ASEAN member has offered to replace US bases in the Philippines
(or been asked by the United States to do so), several have come forward
with offers to negotiate arrangements under which US military forces
would have access to repair facilities, sources of supply, and training
sites.
Strength In Diversity
ASEAN has shown a remarkable ability to put aside historical disputes
and limited economic complementarity in order to concentrate on issues
of common interest. All six members have made preservation and
enhancement of regional cohesion through ASEAN a foreign policy
priority. During more than 20 years of cooperation, ASEAN has grown
into a dynamic group of developing countries with some of the highest
growth rates in the world. It has gained the respect and acceptance of
the entire international community, which are matters of great pride to
its peoples, who now feel that they can determine their own destiny.
ASEAN unity and cooperation have not only served regional security and
development but also increased these nations' influence in international
forums such as the United Nations and the GATT, and in international
commodity agreements. ASEAN is recognized as a leader of the developing
world, with successful, market-oriented economies. In seeking to
advance its interests, ASEAN has stressed cooperation rather than
confrontation with industrialized countries in international
organizations and conferences.
US-ASEAN RELATIONS
The US-ASEAN relationship is substantial and expanding. Secretary of
State Baker attended the 1989, 1990, and 1991 ASEAN Post-Ministerial
Conferences, following a precedent established by his predecessors of
meeting annually with the ASEAN foreign ministers. By encouraging wide-
ranging discussions of issues, these meetings reinforce the value the
United States places on our long-standing relationship with the ASEAN
nations.
Economic Relations
With trade totalling $45 billion in 1990 ASEAN is the United States'
fifth largest trading partner, and the US is ASEAN's largest single
market. Principal US exports to ASEAN are capital goods, transportation
equipment, chemicals, and agricultural products. The United States
imports ASEAN's natural rubber, tin, petroleum, sugar, and palm oil, as
well as textiles and electronics products and components.
Generally favorable investment climates, market-oriented economies,
relatively low labor costs, and abundant natural resources have
attracted significant US investment to ASEAN. However, US investment in
the region faces competition from that of Japan, Taiwan, and Singapore,
among other nations. The United States is currently the largest
investor in Singapore and the Philippines, second-largest in Thailand,
third-largest in Malaysia, and fourth-largest in Indonesia. The
Overseas Private Investment Corporation, a US government agency, has
over $600 million of investment guarantees and loans outstanding to
ASEAN as of mid-1991. US Export-Import Bank export insurance and loans
outstanding to ASEAN totaled $2.4 billion as of September 1991.
US Economic Assistance
The US Agency for International Development (AID) strategy supports
strengthening the private sector and freeing financial resources,
promoting democratic institutions, and sustaining the natural resource
bases of member states.
The Private Investment and Trade Opportunities (PITO) project is a joint
effort by the US and ASEAN governments and private sectors to expand
trade, investment, and technology transfer between the United States and
ASEAN. The project is funded by private contributions and by the ASEAN
Regional Program of AID. The most significant project developed under
PITO's auspices to date is the environmental improvement project, which
would use $17 million in aid over a 6-year period to lessen industrial
and urban pollution.
In addition to regional development assistance to ASEAN, the United
States has provided substantial funding for bilateral development
assistance to Indonesia, Thailand, and the Philippines. Post-World War
II US bilateral eco- nomic assistance to ASEAN countries through fiscal
year 1990 is more than $14 billion. There also are a number of
cooperative programs with ASEAN in the educational, cultural, and
scientific fields.
Political Relations
ASEAN's moderating influence in international councils, as well as its
relative prosperity, have contributed to the peace and stability of the
region. ASEAN cooperation also is important to the United States on the
issue of long-term resettlement of refugees out of first-asylum nations
and efforts to account for Americans missing and unaccounted for in
Indochina.
Frequent ASEAN-US consultations increase understanding of common
interests and provide opportunities to consult informally on a wide
range of issues.
The ASEAN-US economic dialogue began in September 1977 in Manila.
Subsequent dialogues have been held approximately every 18 months.
Additional informal political and economic consultations have evolved
over the years.
The ASEAN Washington Committee (AWC) is composed of the ambassadors to
the United States of the six ASEAN countries. It meets periodically
with US officials to discuss common issues.
The Economic Coordinating Committee (ECC) was established at the third
economic dialogue in Manila and comprises senior ASEAN-nation embassy
officials in Washington, DC, and their counterparts in the United
States, as well as US and ASEAN private sector representatives. The ECC
generally meets monthly to review cooperative activities and economic
issues.
The US-ASEAN Council for Business and Technology was established in 1979
to bring together US and ASEAN private sector leaders to discuss common
interests and the enhancement of trade and investment and relations
between the two regions.
Under a program known as the ASEAN-US Initiative (AUI), the US Trade
Representative and ASEAN ambassadors signed a memorandum of
understanding in December 1990 to establish regular ministerial-level
trade consultations and a senior officials' working group to explore
mechanisms for enhancing trade and investment relations.
[EDITOR'S NOTE: Table: ASEAN SOCIOECONOMIC INDICATORS, 1990 (est.).
Unable to provide in electronic format. See hard copy.]

[end of document]

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